France cuts VAT this July

Lower taxes will mean savings for Holidaymakers In France

May 2009

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The French government have announced this week that VAT will be cut from 19.6 per cent to just 5.5% from July 1st 2009.

This means that British travellers will be able to dine out and drink for less in France when holidaying this year. Restaurateurs and café owners will be able to reduce their costs by about 10%.

This move will help offset the weakness of the pound against the euro which has meant that prices in Europe are costing on average 12 per cent more than last year.

Didier Chenet head of France’s hotel, restaurant and café union said “Client will now be able to enjoy a full meal with a 5.5 per cent VAT rate”.

Other tax cuts across Europe recently include both the Dutch & Belgian governments reducing airline tax in an attempt to keep people flying. Sadly this is contrary to the British government who still plan to raise Air Passenger Duty tax by up to 112 per cent over the next two years.

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